A NEW crackdown on late payments to small businesses only goes half as far as needed, according to business leaders.
The Small Business Protections Bill has been introduced by the UK Government to put a 60-day cap on payments for large firms.
But Helensburgh and Lomond small businesses need a 30-day cap, they warn.
The new legislation will also put mandatory interest on late payments, and aim to ban retentions in construction.
The mandatory interest will be at 8 per cent above the Bank of England base rate, and the Small Business Commissioner will have new powers to investigate poor payment practices, as well as fine the worst offenders.
The government said fines could be worth tens of millions for persistent late payers.
Wendy Hamilton, of Grasshopper Toys and the Federation of Small Businesses, said it was only a start.
"All small business owners will welcome any action on late payments," she told the Advertiser.
"But let's be honest about what this Bill actually delivers, because a 60-day cap on payment terms is not a good outcome, it's just a less bad one.
"For a small business that may be stretched across payroll, stock, and bills, waiting two months for money you've already earned can be the difference between survival and closure.
"Late payments close 38 businesses every single day. Many of those will have been owed money that simply arrived too late to save them, and a 60-day cap does nothing to change that reality.
"The stronger powers for the Small Business Commissioner are genuinely welcome, and the mandatory interest provisions show some understanding of the problem.
"But the uncomfortable truth is that many small business owners still won't pursue late payers, even with these new tools, because the relationship risk is simply too high. When your biggest customer is the problem, reporting them isn't always a real option.
"I hope this Bill marks the beginning of meaningful reform, not the end of the conversation. Small businesses deserve 30 days as a standard: not 60 days dressed up as a victory."
Late payments are just part of the challenges facing small businesses in Helensburgh and Lomond.
The government says the legislation will update the 1998 Late Payment of Commercial Debt Act to give the "strongest legal framework on late payments in the G7".
Business Secretary Peter Kyle said: “Costing the UK economy £11 billion every single year, late payments choke growth, cost jobs, and force too many good businesses to close. That ends today.
“Through this landmark bill we are delivering the toughest payment reforms in over a generation, to give the UK the strongest legal framework in the G7, and back small businesses with the certainty they need to grow and thrive.”
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